Zambia and South Africa Finalize $1.5 Billion Copper Export Pact via AfCFTA, Glencore Leads Shipments

Zambia and South Africa finalized a $1.5 billion copper export agreement under the African Continental Free Trade Area (AfCFTA) in December 2024, with Glencore leading the shipments between the two countries. Officials said the pact aims to boost Zambia’s copper exports and strengthen regional trade integration within the AfCFTA framework.

Under the new agreement, Glencore, a leading global commodity trader, will spearhead copper shipments from Zambia to South Africa, aiming to capitalize on the preferential trade terms established by the African Continental Free Trade Area (AfCFTA). Officials indicated that the pact, valued at $1.5 billion, is designed to enhance Zambia’s copper export capacity and deepen economic ties within the continent.

Trade records show that Zambia was the fourth-largest source of copper ore imports for South Africa in 2023, with imports totaling approximately $9,160.

This placed Zambia behind Zimbabwe, the Democratic Republic of Congo (DRC), and Botswana in supplying copper ore to South Africa, according to data analyzed by trade experts. Despite Zambia’s relatively modest share, officials noted that the agreement seeks to expand this footprint significantly.

South Africa’s copper ore trade dynamics in 2023 reflected a positive export balance, with exports reaching ZAR443 million (approximately $25 million) in December 2024, while imports stood at ZAR41,600 (around $2,300). However, South Africa’s copper ore exports declined slightly by ZAR5.13 million, or 1.14%, compared to December 2023, according to customs data. The country exported $281 million worth of copper ore in 2023, predominantly to China, which accounted for $229 million of those exports. Other notable destinations included Mozambique ($19.7 million), Malaysia ($11.5 million), Spain ($7.84 million), and Bulgaria ($5.75 million).

South Africa’s copper ore imports totaled $587,000 in 2023, ranking it as the world’s 50th largest importer of the commodity. Zimbabwe and the DRC were the leading suppliers to South Africa, providing $269,000 and $265,000 respectively, followed by Botswana with $26,600. Zambia’s contribution, while smaller, is expected to grow under the new trade pact, officials said.

The AfCFTA, ratified by Zambia in early 2021, provides the framework for this expanded trade relationship. The agreement encompasses 54 African countries, with a combined population of 1.3 billion and a purchasing power estimated at $3.4 trillion. According to Zambia’s Ministry of Commerce, Trade and Industry, the AfCFTA enables the country to integrate more deeply with regional blocs such as the Southern African Development Community (SADC) and the Tripartite Free Trade Area, facilitating access to larger markets and promoting export diversification.

Copper remains Zambia’s dominant export commodity, accounting for an average of 75.6% of the country’s foreign exchange earnings between 2014 and 2018, according to the Zambia Development Agency. The government’s AfCFTA National Strategy emphasizes leveraging the agreement to increase export earnings while encouraging diversification beyond traditional copper exports. The strategy also targets micro, small, and medium-sized enterprises (MSMEs) to tap into broader African markets, thereby expanding the country’s economic base.

Officials highlighted that the AfCFTA’s preferential trade provisions are expected to improve Zambia’s export competitiveness by reducing tariffs and non-tariff barriers, which could attract greater foreign investment and support economic growth. The agreement aligns with Zambia’s broader vision of achieving upper-middle-income status by 2030, as outlined in national development plans.

Recent trade data indicate a sharp decline in South Africa’s copper ore imports from December 2023 to December 2024, dropping by ZAR2.98 million, or 98.6%. Despite this, South Africa maintained steady export levels in December 2024, underscoring the country’s role as a key copper ore exporter in the region. Sources confirmed that Zambia’s consistent, albeit smaller, role as a supplier to South Africa is expected to expand through enhanced cooperation under the AfCFTA framework.

The agreement also reflects Zambia’s commitment to implementing its AfCFTA National Strategy, which focuses on capitalizing on comparative advantages in priority sectors and integrating with regional trade mechanisms. Analysts noted that the pact could serve as a catalyst for increased intra-African trade and investment, particularly in the mining sector, which remains central to Zambia’s economy.

Officials said the next steps involve operationalizing the agreement through coordinated customs procedures, infrastructure improvements, and capacity building for MSMEs to ensure smooth trade flows. The partnership between Zambia and South Africa under the AfCFTA framework is seen as a model for regional cooperation in the mining and export sectors.